El Salvador bought 500 bitcoins for more than 15.3 million dollars

The president of El Salvador, Nayib Bukele , announced this Monday on Twitter the purchase of 500 bitcoins for more than 15.3 million dollars at a time when the value of this digital asset has plummeted.

“ El Salvador just bought the fall! 500 coins at an average price in dollars of 30,744 ″, the Salvadoran president wrote in English.

With this purchase, the country would have bitcoin reserves for 2,301 coins , but it is unknown if the government has sold part of these for the delivery of a bonus to the population equivalent to 30 dollars and the construction of a veterinary hospital.

The purchase of bitcoin, of which neither the Government nor the autonomous entities involved reveal data beyond Bukele’s tweets, occurs after the cryptocurrency lost almost 50% of its value over the weekend six months after reaching its all-time highs 

It has been six months since bitcoin reached its all-time high of $68,991, but has since fallen nearly 50% amid tightening monetary policies to combat high inflation.

According to market data consulted by the EFE agency , bitcoin was down 49.92% from its highs recorded on November 10, 2021, to $34,550.

A similar situation occurred in 2021, given that in mid-May bitcoin reached $33,200 and lost 49% from $64,869 marked in April of that year, which was then its all-time high.

El Salvador recently completed 8 months since the Bitcoin Law came into force, which gives it legal circulation in the country along with the United States dollar.

These months have been marked by the lack of accountability for the use of more than 200 million dollars , 150 of them for a trust -fund-, approved by the Legislative Assembly for the adoption of bitcoin.

The aforementioned trust is managed by a state bank, which secreted the information related to the management of this money.

The main projects linked to bitcoin that the Government has launched are the mining of this cryptocurrency to try to generate wealth with the energy of volcanoes, the “bitcoin city” – whose date for the beginning of construction is unknown – and the issuance of 1,000 million dollars in bonds .

This last measure has also been placed as an alternative to meet the growing financing needs of the Salvadoran Executive.

The Minister of Finance, Alejandro Zelaya , said in early February that the issuance of these bonds ” could be quite interesting as a mechanism for managing El Salvador’s debt ” and opens ” a new financing window ” to better manage the payback curve.

It was expected, according to the government announcement, that the issue would take place last March, but it was supposedly suspended to give priority to a pension reform.

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